SANTA CLARA, Calif. – High-speed technologies company Symyx Technologies Inc. went public November 18, offering 5.5 million shares at $14 apiece. The company’s stock priced at the top of its $12 to $14 filing range.
Credit Suisse First Boston, Donaldson, Lufkin & Jenrette Inc., Invemed Associates and Schroder & Co. Inc. underwrote the initial public offering, which left 28.7 million shares outstanding.
There were no selling shareholders. Institutional Venture Partners, CMEA Ventures, Shomar Corp., WS Investment Co. 95A and Venrock Associates were venture backers.
The company screens a very large sample of unique materials for desired properties through its proprietary combinatorial approach, which is faster than typically time- and money-consuming trial and error methods. Through this technique, Symyx Technologies accelerates the process of discovering new materials and products. Its techniques can be applied to such materials as adhesives, agricultural products, fuel cells, pharmaceuticals, phosphors, plastics, rubbers and sealants.
The $71.1 million in proceeds expected from the IPO will be used for general corporate purposes, including working capital and for the possible acquisition of, or investment in, complementary businesses or products.
Symyx Technologies has never been profitable, losing $5.6 million in 1997 and $8.2 million in 1998.
Mario Rosati, a member at Wilson Sonsini Goorich & Rosati, joined the company’s board of directors in September 1994. Thomas Baruch, a general partner at CMEA Ventures, joined the board in May 1996. Samuel Colella, a general partner at IVP, joined the company’s board of directors in August 1997.
Symyx Technologies – Selected Financial
(in thousands, except per share data)
Year Ended December 31 Nine Months Ended September 30
1996 1997 1998 1998 1999
Total revenue 4,806 13,787 10,035 22,850
Net loss -2,681 -5,596 -8,155 -6,454 -669